By NNN-KUNA,
Paris : The International Energy Agency (IEA), which groups the world’s industrialised countries and largest oil consumers, has welcomed an invitation by Saudi Arabia for talks between the oil consuming and producing countries to discuss the sharp rise in oil prices.
“The International Energy Agency (IEA) will attend the talks to be convened by the Kingdom of Saudi Arabia in Jeddah on June 22 between producer and consumer countries in the aftermath of fresh record oil prices,” the IEA said in a statement issued here Thursday.
“These high prices are not sustainable and jeopardize economic growth globally. The impact is especially acute in developing countries,” said IEA executive director Nobuo Tanaka.
The IEA stated that the Saudi initiative “can contribute to enhanced dialogue between producers and consumers and convey clear messages that oil supply is going to keep pace with demand growth in the coming years.”
While consumer nations say that supply is a large part of the problem with current oil prices that have hit record levels close to USD 140 per barrel, producers say that speculation and other elements are major factors in price rises and that there is adequate supply to handle current demand.
“We would welcome an opportunity to act collectively to reassure the market about future demand and supply balances in order to change the perception of extended tightness,” Tanaka said.
While market prices continue to rise in the past week, Western governments still declined to consider a drop in domestic oil taxes, which provide large sums for their budgets. In some countries in Europe, these domestic gasoline taxes represent 60 per cent of the retail price of gasoline.
There have been mass demonstrations across Europe over the past weeks to protest high gasoline and diesel prices and truckers, farmers, and fishermen have blocked roads, towns, and refineries to call for an easing of prices.